Bitcoin Cash bulls need to exceed 200 SMA to stay in control
The price of Bitcoin in recent weeks has failed to break a key resistance line, with several rejections around $245, reducing bull plans from a new price test near $300.
Cryptomoeda, which was created from a Bitcoin fork in 2017, had a few great days, breaking above a downward channel to reach new highs in October. However, the drop to lows of $ 207 on September 23rd and the subsequent jump above $ 240 were halted as noted above.
On October 10, the peer-to-peer e-currency price rose to $246.6. However, a series of attempts to break the high failed as the bears ensured that the price of cryptomime reached a low of $233 on Monday, October 12.
At the moment the BCH/USD pair is trading around $242, the bullish momentum once again stagnating around the 200-day simple moving average.
BCH/USD: Technical Image
At the moment, there has been stagnation within a range – 50 SMA ($ 234) and 200 SMA ($ 245.4) – which is limiting movement on both sides of the curve.
Daily price chart BCH/USD.
As can be seen on the daily chart above, the BCH/USD pair had three successive green candles. However, as the movement is limited by the 200 SMA, the bulls need to keep the gains above the level and then break above 100 SMA to keep the bears at bay.
If this happens, the sustained high pressure will help the bulls break the important $ 290 resistance area. The bullish outlook in the period is aided by RSI and MACD, which suggests that buyers still have the advantage if prices remain firm above 50 SMA.
The area is important because it keeps bulls within range of 200 SMA, where IntoTheBlock data shows that holders bought approximately 660,000 coins. The considerable wall provided by the 78,000 addresses is the only strong barrier before $270 and $290.
On the other hand, sellers holding their positions around the 200-day SMA risk further weakening the bulls. At this level, the lack of upward momentum in the market would mean an aggressive defense of the 50 SMA mentioned above.
If sellers establish a position and push down, the BCH/USD pair will likely drop below $230, with $229-$223 providing the next major support zone. Here, bears will need to break through a huge wall, where almost 134,440 addresses have purchased over 1.69 million coins.